Swedish oil company Lundin Petroleum saw its profit drop to $54.9 million in the first quarter of 2019, compared to $228.8 million earned in 1Q 2018. Revenues for the quarter fell to $491.6 million, from $692.9 million a year ago.
Production declined to 78.8 thousand barrels of oil equivalent per day, down from 83.1 Mboepd in the first quarter of 2018.
Despite the drop in production, CEO Alex Schneiter said the output was at the upper end of expectations, boosted by Edvard Grieg and Alvheim offshore fields in Norway.
Lundin’s quarterly report shows production was 3 percent above mid-point of the production guidance for the quarter and towards the upper end of the guidance range
“This result is due to facilities and reservoir performance at the Edvard Grieg field. Production guidance for the full year remains between 75 and 95 Mboepd, reflecting a range around the expected start-up of the Johan Sverdrup field in November 2019,” Lundin said
CEO Schneiter commented: “At Johan Sverdrup, a significant milestone has been reached with the offshore installation of all the topsides and bridges completed at the end of March, meaning commissioning and hook up has begun in earnest, alongside the tie-back of the eight pre-drilled production wells. With the majority of commissioning for these facilities having taken place onshore and the ability to perform single lift installation using the Pioneering Spirit vessel, I am confident in the expected November 2019 start-up of this world-class asset.”
“At our Capital Markets Day in January, I outlined the seven potential projects which we have in the pipeline and I am pleased to say that four of these are now underway. With the sanction of the Solveig Phase 1 development and Rolvsnes well test, as well as the commitment to the infill well programme on Edvard Grieg; the production plateau profile at the Greater Edvard Grieg Area will be extended further and this is a clear example of how an organic growth strategy can sustainably deliver significant value creation.”
He said that during the quarter Lundin added a further two wells to the 2019 exploration program, bringing the total to 17 wells, “our busiest ever.”
Four wells have been completed yielding one oil discovery. The remaining programme is targeting net unrisked resources of over 400 MMboe. The appraisal and exploration spend guidance for 2019 is being maintained at $300 million.
“The year has started well in this respect with success at the Froskelår Main well near Alvheim and the remaining programme is targeting net unrisked resources of over 400 MMboe, which ensures a significant, continuous exploration programme throughout the year,” Schneiter said.
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